Primary TMT Prices on the Rise Amid Supply Constraints, Trend Expected to Continue in October

Primary TMT market remains unstable due to steady price hikes over the past few days, driven by supply shortages. The supply issues are further exacerbated by underperformance at the VSP plant in the South. Distributors expect further price increases as October approaches, influenced by festival demand.

Primary TMT Prices

Prices are as follows (size 12 to 32mm): Ex-Mumbai: Rs. 52,00-52,500/ton Ex-Delhi NCR: Rs. 52,000-52,500/ton Ex-Vizag: Rs. 50,500–51,000/ton
Note - Distributors across North, West and South have increased prices. Above pricing is based on the same.

Primary TMT Demand & Supply

The market appears unstable because prices have been rising steadily over the past two to three days. Demand appears to be static, and the volume of inquiries is constant. The lack of material with distributors is the cause of the price hike. The southern part of the nation has been harmed since the VSP plant is not operating at maximum capacity. The distributors anticipate an additional increase in prices in October.

Primary TMT News

In response to financial losses, the Steel Executives Federation of India (SEFI) has proposed a centralized marketing system for state-owned steel companies, which could potentially stabilize the market in the coming weeks.

Expert Opinion

Prices at the primary mills went up last week. In the upcoming days, the distributors anticipate additional price increases. After the first week of October, the demand and price patterns may become more stable. October will see a number of festivals, which might affect the demand pattern as more people will be traveling home.